Billionaire David Tepper’s 10 Stock Picks with Huge Upside Potential

8. QUALCOMM Incorporated (NASDAQ:QCOM)

Appaloosa Management Stake Value: $122,896,000

Upside Potential as of May 5: 32.80%

Number of Hedge Fund Holders: 79

QUALCOMM Incorporated (NASDAQ:QCOM) is a global wireless technology company. It designs and manufactures semiconductor chips for smartphones, automotive systems, Internet of Things (IoT) devices, and networking equipment. The company operates through Qualcomm CDMA Technologies (QCT) and Qualcomm Technology Licensing (QTL) segments.

QUALCOMM’s (NASDAQ:QCOM) Q2 2025 financial report indicates that the company is on a strong growth trajectory. During the quarter, non-GAAP revenues reached $10.8 billion, up 15% year-over-year, and non-GAAP earnings per share touched $2.85, a 17% increase from the same period last year. The QCT segment accounted for much of this income, posting $9.5 billion in revenues. QUALCOMM Incorporated (NASDAQ:QCOM) is increasing its target for total return of capital to stockholders to 100% of free cash flow in fiscal 2025. It also raised its quarterly cash dividend to $3.56 annualized payout per share.

Even with the stranglehold on the wireless technology industry, QUALCOMM Incorporated (NASDAQ:QCOM) is still working on initiatives to strengthen its dominance. In Q2 of fiscal year 2025, the company introduced several groundbreaking products and formed strategic partnerships. It announced the Qualcomm X85 5G Modem-RF platform, described as “the world’s most advanced modem-to-antenna system.” In the industrial IoT space, QUALCOMM (NASDAQ:QCOM) acquired Edge Impulse Inc. to enhance its AI capabilities.

On May 1, 2025, Susquehanna lowered its price target on QUALCOMM (NASDAQ:QCOM) from $210 to $190 but kept a Positive rating on the shares. The analysts said in a research note that while the company’s financial status is robust, the future might be shaky because they may lose up to 30% of the i17 modem share to Apple (NASDAQ:AAPL).